networkBoy writes: "Intel is divesting its NOR flash memory devision. ST will be divesting it's NOR and NAND. The companies are spinning off to a private equity firm and will be forming a new company.

The Swiss and American chipmaking giants said the new company will be comprised of assets which generated about $3.6 billion in combined annual revenue last year.
Under terms of the agreement, STMicroelectronics will sell its flash memory assets, including its NAND joint venture stake, to the new company while Intel will sell its NOR assets and resources. NOR flash is a technology flash devices use to store and run code, usually in small capacities.
In exchange, Intel will receive a 45.1 percent stake in the new company and $432 million in cash. STMicroelectronics will own 48.6 percent of the new firm and receive $468 million in cash at closing. Francisco Partners LP, a Menlo Park, Calif.-based private equity firm, has agreed to invest $150 million in cash for convertible preferred stock representing a 6.3 percent stake.